Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/254260 
Year of Publication: 
2022
Series/Report no.: 
IFS Working paper No. W22/10
Publisher: 
Institute for Fiscal Studies (IFS), London
Abstract: 
Private transfers can affect the spending response to stimulus payments, as those receiving income windfalls may transfer resources to other households in greater financial need. We report a survey experiment where individuals were asked how they would respond to a £500 payment, with a randomly selected subset of individuals explicitly told that all households would receive the same payments (a 'public windfall' scenario). This additional information increased MPCs by 11%. Reported transfer intentions in response to windfalls suggest that public payments crowd out private transfers, partly accounting for the higher MPCs in the public windfall case.
Subjects: 
spending
transfers
MPCs
survey experiment
JEL: 
D12
D14
E21
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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